Air Canada announced on Thursday that it would be reducing several non-union management positions following a thorough review. Christophe Hennebelle, the vice president of corporate communications, stated that the decision to cut these positions was made to ensure optimal resources and processes to support business operations and customer needs. Approximately 400 positions, representing about one percent of Air Canada’s workforce, will be affected by these reductions. Hennebelle did not specify whether the cuts would be achieved through attrition or by not filling vacant roles, but he assured that they would not impact the airline’s day-to-day operations.
The job cuts coincided with Air Canada’s unveiling of plans to expand its services from Toronto’s Billy Bishop airport. The airline will introduce 10 new daily flights to various U.S. destinations, including New York, Boston, Chicago, and Washington, D.C. Additionally, two new flights to Ottawa and one to Montreal will be added, with the U.S. flights scheduled to commence in the spring and the additional Canadian flights starting in January. Mark Galardo, Air Canada’s executive vice president and chief commercial officer, described this expansion as the most significant at Toronto Island in 35 years.
This development signals a heightened competition between Air Canada and Porter Airlines, which is based at Billy Bishop and currently serves the same U.S. cities. While Air Canada predominantly operates from Toronto’s Pearson airport, the new routes represent a strategic move in the ongoing rivalry with Porter.
Air Canada is set to release its third-quarter results on November 5. A prior estimate released by the airline indicated a two percent decline in operating capacity compared to the previous year, attributed to over 3,200 flight cancellations in August due to a strike by unionized flight attendants.
The strike, which commenced on August 16, led to flight disruptions until August 19 when an agreement was reached following ministerial intervention. Despite rejecting the airline’s wage offer, the flight attendants eventually agreed to binding arbitration, marking a resolution to the strike. The financial impact of the strike on Air Canada’s operating income is estimated at $375 million.
In response to changing travel patterns influenced by political factors such as the U.S.-Canada trade disputes under President Donald Trump, Air Canada and other airlines have witnessed a decline in travel to the U.S. According to Statistics Canada data from September, air travel from the U.S. to Canada has decreased by 27.1 percent compared to the previous year.
